China delays approval for Geely, BYD investment plans in Latin America
Approval from China has taken longer than expected for the projects, with China’s state planner raising concerns that there are tech transfer risks in the Chinese automakers’ plans, Reuters reports.
China is delaying approval for plans by Chinese automakers Geely and BYD to produce cars in Latin America amid an escalating trade war between the US and China, Reuters reports.
According to an agreement reached between Geely and Renault in February, Geely would use Renault’s factories in Brazil and take a minority stake in the French automaker’s business in Brazil.
BYD had announced plans for the facility in Mexico in 2023 and was supposed to announce its location by the end of 2024.
However, approval from China has taken longer than expected for the two projects, and China’s state planner recently raised concerns that there are technology transfer risks in the Chinese automakers’ plans, sources told Reuters.
Meanwhile, after the recent tit-for-tat tariff impositions by the US and China, there is further uncertainty in the global economic climate that could add volatility to the risks involved in return to investments, Chinese auto industry associations have reportedly told the automakers.
Geely in a statement appeared to deny that there were any delays or extra scrutiny following its agreement with Renault.
According to an earlier report by the Financial Times, China was delaying approval for BYD’s Mexican plant over concerns that the tech developed by the EV maker could leak to the US.
